Are exchange checks the answer to systemic risk?

Systemic risk has been one of the biggest priorities in recent years for exchanges

By Guy Warren, chief
executive officer at ITRS

How can exchange system monitoring help
protect the markets, and the reputational, regulatory and
revenue drivers for exchanges and trading venues?

Do you remember the famous Honda
advert a few years ago, known as 'The Cog’?
One small initial movement, through a fascinating series of
complicated mechanisms, can result in a much larger result
– like moving a car. But they can be incredibly
fragile. Move one piece of the puzzle ever so slightly out of
position and the machine breaks down. The lesson is that in a
complex system, even a small event can contribute to
catastrophe.

In the intricate financial services world
- and for exchanges and trading venues especially - tackling
such systemic risk has been one of the biggest priorities in
recent years and it’s essential that venues
monitor their technology for potential problems.

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